Mortgage Rate Update

 ALERT!  SEC charges Goldman Sachs with fraud, stocks drop – rates improve.

 (When the bond goes up, rates go down.)

12:06 PM  CST: 
This morning, the bond started off up 16 basis points, lost it all, then gained it back. 
Then news came out about the SEC is finally going to charge Goldman Sachs with fraud for their role in the subprime mortgage debacle, rocking the stock market. 

At this moment, the stock market is down about 147 points and that has caused investors to look to bonds for safety.  The buying in bonds sent it up as high as +42 basis points, and as you can see in the chart it has lost about 20 of those points already. 

This kind of unexpected news can be a game changer for the bond market, but so far it seems to be shrugging off the impact.  Let’s see how the day closes going into the weekend.  You will notice the bond hit the R2 resistance point currently at 100.53 and has settled right at the R1 level of 100.28.  Let’s see if we stay in this trough or create a new cycle. 

If you have not yet locked in these great rates, you may very well miss them if you do not act quickly.  If you know someone that is in the loan process, please make them aware as well.